14 – Provisions for pensions
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|
June 30, 2017 |
Dec. 31, 2016 |
June 30, 2017 |
Dec. 31, 2016 |
June 30, 2017 |
Dec. 31, 2016 |
June 30, 2017 |
Dec. 31, 2016 |
Discount rate |
|
2.00 |
1.80 |
3.70 |
4.00 |
0.60 |
0.60 |
2.70 |
2.80 |
Projected pension increase |
|
1.50 |
1.50 |
− |
− |
− |
− |
3.10 |
3.10 |
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
Discount rate |
|
1.80 |
2.50 |
4.00 |
4.20 |
0.60 |
0.80 |
2.80 |
4.00 |
Projected pension increase |
|
1.50 |
1.50 |
− |
− |
− |
− |
3.10 |
2.90 |
The assumptions used to determine the defined benefit obligation as of December 31, 2016, are to be used in the 2017 reporting year to determine the expenses for pension plans.
The standardized return on plan assets is ascertained by multiplying plan assets at the beginning of the year with the discount rate used for existing obligations at the beginning of the year. This takes into account scheduled benefit and contribution payments to be made during the year.
The rise in the discount rate in the eurozone due to capital market developments in the first half of 2017 was primarily responsible for actuarial gains of €416 million in the defined benefit obligation. Including the deviation between the actual return on plan assets and standardized return on plan assets, positive remeasurement effects occurred in the amount of €880 million. These were recognized in other comprehensive income (OCI), taking into account deferred taxes of €252 million. The transfer of €500 million in securities to plan assets of BASF SE did not impact the statement of cash flows. Overall, pension provisions declined by €1,247 million compared with December 31, 2016.